Robbins & Myers Announces Third Quarter 2011 Results

DAYTON, Ohio, June 22, 2011 /PRNewswire/ -- Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share (DEPS) of $1.54 in its fiscal third quarter ended May 31, 2011, including a $1.16 net gain from the sale of its Romaco business in April.  DEPS from continuing operations were $0.41 compared with $0.20 in the prior year third quarter. Adjusting for charges relating to the January 10, 2011 acquisition of T-3 Energy Services, Inc., the Company earned $0.53 per share from continuing operations in the third quarter of 2011.  Current quarter adjusted DEPS included a charge of $0.15 per share to reduce the value of certain tax assets in the Company's Process Solutions business.

Consolidated sales were at an all-time high of $237 million in the third quarter of 2011.  Excluding T-3, sales were $170 million, representing 42% growth over the prior year quarter.  Both of Robbins & Myers' business platforms achieved strong growth.  Consolidated third quarter 2011 orders were a record $263 million, or $171 million excluding T-3, 29% higher than the comparable prior year period.  Backlog at the end of the recent quarter stood at $248 million.  These results exclude Romaco, which is included in income from discontinued operations.

"Performance across our energy product lines exceeded expectations this quarter due to very strong demand from our oil & gas customers," said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc.  "T-3 booked a record level of orders in the quarter, benefitting from higher drill rig deployments and later-cycle new rig builds.  The business has outperformed our expectations since we acquired it in January, and the integration remains on track."

Third quarter 2011 earnings before interest and taxes (EBIT) were $39 million or a record $47 million excluding one-time charges relating to the acquisition of T-3, significantly higher than the $12 million reported in the third quarter of 2010.  Adjusted EBIT margins were 19.8%, double the margins in the prior year third quarter.  The Company reported adjusted EBITDA of $54 million in the third quarter of 2011, compared with $15 million in the third quarter of fiscal 2010.

Robbins & Myers generated $39 million of cash from operating activities in the third quarter of fiscal 2011 compared with $28 million in the prior year same quarter.  Working capital efficiency improved across the enterprise, and the Company ended the recent quarter with $172 million of cash and $1 million of debt.

"Recent record-setting performance reflects in part a more profitable portfolio of businesses following the recent acquisition of T-3 and divestiture of Romaco," said Mr. Wallace.  "The Company supplies products and services that improve customer productivity in critical applications.  We are improving product management, engineering and customer-facing capabilities to support our organic growth strategy, and our acquisition program focuses on new platforms for growth and businesses that complement existing product lines.  We have ample financial capacity to support our growth programs."

Updated Guidance

Based on current strength in energy markets and the Company's backlog levels, Robbins & Myers increased its fiscal 2011 adjusted DEPS forecast from $1.95-$2.15 to $2.23-$2.33 and expects to earn $0.65-$0.75 in its fourth quarter of 2011.  The Company's forecasts exclude restructuring costs, one-time costs associated with the T-3 acquisition, gains resulting from the sale of the Romaco businesses, and income from discontinued operations.

Discontinued Operations

Discontinued operations represent the net income of the Romaco business for all periods presented prior to its April 29, 2011 divestiture.  Discontinued operations in the third quarter and nine months ended May 31, 2011 also include a $53 million gain from the sale of the Romaco business.

Third Quarter Results by Segment

All comparisons are made against the comparable year-ago quarterly period unless otherwise stated.

The Company's Fluid Management segment reported orders of $204 million, or $111 million excluding T-3, up 32%, due to strength in energy and industrial markets.  Sales were $181 million in the third quarter, or $112 million excluding T-3, an increase of 43%.  Adjusted EBIT was $51 million or 28.3% of sales, an increase of 310 basis points.  Ending backlog of $155 million, which includes $90 million from T-3, compared with $52 million at the end of the prior year third quarter.

The Process Solutions segment reported orders of $59 million, an increase of 24% due to improving demand for capital goods in certain regional chemical markets.  Sales of $57 million were 42% higher, and the business reported $1.5 million of EBIT in the third quarter of 2011 compared with a $1.9 million loss.  Backlog expanded for the seventh consecutive quarter, ending the quarter at $93 million.  European restructuring activities are expected to be expanded in the fourth quarter of 2011 to improve the business' long-term cost structure.

Conference Call to Be Held Today, June 22 at 10:00 AM (Eastern)

A conference call to discuss third quarter 2011 financial results is scheduled for 10:00 AM Eastern on Wednesday, June 22, 2011.  The call can be accessed at www.robn.com or by dialing 866-356-3093 (US/Canada) or +1-617-597-5381, using conference ID #53772485.  Replays of the call can be accessed by dialing 888-286-8010 (US/Canada) or +1-617-801-6888, both using replay ID #50085776.

About Robbins & Myers

Robbins & Myers, Inc. is a leading supplier of engineered equipment and systems for critical applications in global energy, industrial, chemical and pharmaceutical markets.

In this release the Company refers to EBIT, adjusted EBIT, adjusted EBITDA and adjusted DEPS, all non-GAAP measures.  The Company uses these measures to evaluate its performance and believes these measures are helpful to investors in assessing its performance.  A reconciliation of EBIT to net income is included in our Condensed Consolidated Income Statement, and other reconciliations are included in this press release.  EBIT, adjusted EBIT, adjusted EBITDA and adjusted DEPS are not a measure of cash available for use by the Company.

Forward-Looking Statements

Statements set forth in this press release that are not historical facts, including statements regarding future financial performance, future market demand, future benefits to shareholders, future economic and industry conditions, are forward-looking statements within the meaning of the federal securities laws.  These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company's control, which could cause actual benefits, results, effects and timing to differ materially from the results predicted or implied by the statements.  These risks and uncertainties include, but are not limited to: costs and difficulties related to the integration of T-3; the inability to or delay in obtaining cost savings and synergies from the T-3 merger; inability to retain key personnel; changes in the demand for or price of oil and/or natural gas; a significant decline in capital expenditures within the markets served by the Company; the ability to realize the benefits of restructuring programs; increases in competition; changes in the availability and cost of raw materials; foreign exchange rate fluctuations as well as economic or political instability in international markets and performance in hyperinflationary environments, such as Venezuela; work stoppages related to union negotiations; customer order cancellations; the possibility of product liability lawsuits that could harm our businesses; events or circumstances which result in an impairment of, or valuation against, assets; the potential impact of U.S. and foreign legislation, government regulations, and other governmental action, including those relating to export and import of products and materials, and changes in the interpretation and application of such laws and regulations; the outcome of audit, compliance, administrative or investigatory reviews; proposed changes in U.S. tax law which could impact our future tax expense and cash flow; decline in the market value of our pension plan investment portfolios; and other important risk factors discussed more fully in the Company's reports on Form 10-K/A for the year ended August 31, 2010; its recent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K; and other reports filed from time to time with the SEC.  Robbins & Myers does not undertake any obligation to revise or update publicly any forward-looking statements for any reason.

SOURCE Robbins & Myers, Inc.